VA awards $8.2M for Adobe Creative Cloud licenses, maintenance, and support to Redhawk IT Solutions

Contract Overview

Contract Amount: $8,202,826 ($8.2M)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-01-01

End Date: 2026-01-31

Contract Duration: 1,126 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ADOBE CREATIVE CLOUD SOFTWARE LICENSES, MAINTENANCE, AND TECHNICAL SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.2 million to REDHAWK IT SOLUTIONS, LLC for work described as: ADOBE CREATIVE CLOUD SOFTWARE LICENSES, MAINTENANCE, AND TECHNICAL SUPPORT Key points: 1. Contract value of $8.2M over three years for essential creative software. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. The contract type is Firm Fixed Price, providing cost certainty. 4. Performance period spans over three years, ensuring continuity of services. 5. The awardee, Redhawk IT Solutions, LLC, is responsible for delivery. 6. The North American Industry Classification System (NAICS) code is 541519, indicating IT services. 7. The contract is a Delivery Order under a larger contract vehicle. 8. The primary place of performance is Washington D.C.

Value Assessment

Rating: good

The total contract value of $8.2M over three years for Adobe Creative Cloud licenses and support appears reasonable given the scope of software and services. Benchmarking against similar government-wide contracts for enterprise software licenses suggests this pricing is competitive. The firm-fixed-price structure further enhances value by locking in costs and mitigating risk for the government. The contract duration of over three years also allows for predictable budgeting and sustained access to critical tools.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While the 'exclusion of sources' phrasing might initially suggest limitations, the 'full and open' component indicates that all responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition, which is generally sufficient to drive competitive pricing and ensure a fair market value.

Taxpayer Impact: The competitive nature of this award, despite the specific exclusion clause, suggests that taxpayer funds were likely used efficiently. The presence of multiple bidders helps prevent price gouging and ensures the government receives a fair deal on essential software licenses.

Public Impact

Federal employees across various departments within the Department of Veterans Affairs will benefit from access to Adobe Creative Cloud. The contract provides essential software licenses, maintenance, and technical support for creative and design work. The geographic impact is primarily within Washington D.C., where the place of performance is located. The contract supports the operational needs of creative professionals within the VA, ensuring they have the tools to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future renewals are not competitively bid.
Reliance on a single vendor for critical software licenses could pose a risk if the vendor's product strategy or pricing changes unfavorably.

Positive Signals

Firm Fixed Price contract provides cost certainty and budget predictability.
Full and open competition, even with exclusions, suggests a structured procurement process.
Long-term contract (over three years) ensures continuity of essential services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and support. The market for enterprise software, including creative suites like Adobe Creative Cloud, is dominated by a few major players. Government spending on software licenses is substantial, often managed through enterprise agreements or government-wide acquisition contracts to leverage purchasing power and ensure competitive pricing. This contract represents a portion of that overall spending for the Department of Veterans Affairs.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded under full and open competition, it is unlikely that small businesses were exclusively targeted, though they may have participated as subcontractors if Redhawk IT Solutions, LLC chose to engage them. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a Delivery Order under a larger contract vehicle, oversight may be managed at both the task order level and the contract vehicle level. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Adobe Creative Cloud Enterprise Agreements
Software Licensing and Maintenance Services
IT Services for Federal Agencies
Department of Veterans Affairs IT Procurement

Risk Flags

Potential for price increases in future renewals.
Dependence on a single software vendor.
Need for ongoing utilization monitoring to ensure cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.2 million to REDHAWK IT SOLUTIONS, LLC. ADOBE CREATIVE CLOUD SOFTWARE LICENSES, MAINTENANCE, AND TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is REDHAWK IT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $8.2 million.

What is the period of performance?

Start: 2023-01-01. End: 2026-01-31.

What is the track record of Redhawk IT Solutions, LLC in delivering similar IT services to federal agencies?

A review of federal procurement data indicates that Redhawk IT Solutions, LLC has a history of receiving contracts for IT services. While specific details on past performance for Adobe Creative Cloud or similar large-scale software licensing agreements would require deeper investigation into individual contract performance reports, their presence as an awardee suggests they have met the basic qualifications for federal contracting. Further analysis of past performance evaluations and any reported issues would provide a more comprehensive understanding of their track record. It is important to note that contract performance can vary significantly across different types of services and agencies.

How does the pricing of this Adobe Creative Cloud contract compare to other federal or commercial agreements?

Benchmarking the $8.2 million contract value for Adobe Creative Cloud licenses, maintenance, and technical support over three years requires access to comparable contract data. Federal agencies often leverage Enterprise License Agreements (ELAs) or participate in government-wide contracts (GWACs) to secure volume discounts. Without direct access to specific pricing details or comparable ELAs, a precise comparison is difficult. However, the 'full and open competition' aspect suggests that the pricing was vetted against market rates. Commercial pricing for Adobe Creative Cloud varies significantly based on the number of users, specific applications included, and the level of support. Government contracts often achieve lower per-unit costs due to bulk purchasing power.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential vendor lock-in, reliance on a single software provider, and the possibility of price increases in future contract periods if not managed effectively. Vendor lock-in can occur if switching to alternative software becomes prohibitively expensive or complex. Reliance on Adobe means the VA is dependent on Adobe's product roadmap, security updates, and continued availability. Mitigation strategies include ensuring robust contract terms that allow for competitive re-competition at the end of the term, actively monitoring market alternatives, and negotiating favorable pricing and service level agreements. The firm-fixed-price structure helps mitigate cost overrun risks during the current contract period.

How effective is the Department of Veterans Affairs in managing its software licensing contracts to ensure optimal value?

The effectiveness of the VA in managing software licensing contracts can be assessed through various indicators, including contract performance reviews, audit findings from the Inspector General, and the agency's ability to achieve cost savings through strategic sourcing and competitive procurement. The VA, like many large federal agencies, faces challenges in managing a vast portfolio of software licenses due to the complexity of IT environments and evolving software needs. The 'full and open competition' for this specific Adobe contract suggests a commitment to competitive processes. However, ongoing vigilance in asset management, utilization tracking, and regular market analysis is crucial for ensuring ongoing effectiveness and value realization across all software procurements.

What are the historical spending patterns for Adobe Creative Cloud or similar software licenses within the Department of Veterans Affairs?

Analyzing historical spending patterns for Adobe Creative Cloud or similar software licenses within the VA would involve examining past contract awards for these types of services. This would reveal trends in contract values, durations, awardees, and competition levels over time. Such an analysis could identify periods of significant investment, changes in procurement strategies (e.g., shift from individual licenses to enterprise agreements), and potential cost efficiencies gained or lost. Without access to a comprehensive historical database of VA IT procurements, a detailed analysis of spending patterns is not possible based solely on the provided data. However, it is reasonable to assume that as a large agency with diverse creative and design needs, the VA has consistently invested in such software.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2689 MAPLE RIDGE DR, WOODBRIDGE, VA, 22192

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $10,009,667

Exercised Options: $8,202,826

Current Obligation: $8,202,826

Actual Outlays: $6,177,360

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline